Microsoft Word A033 2010 iaasb handbook isa 600

Appendix 4 

(Ref: Para. A35)

 

Examples of a Component Auditor’s Confirmations 

The following is not intended to be a standard letter. Confirmations may vary from one 

component auditor to another and from one period to the next. 

Confirmations often are obtained before work on the financial information of the 

component commences. 

[Component Auditor Letterhead] 

[Date] 

[To Group Engagement Partner] 

This letter is provided in connection with your audit of the group financial statements of 

[name of parent] for the year ended [date] for the purpose of expressing an opinion on 

whether the group financial statements present fairly, in all material respects (give a true 

and fair view of) the financial position of the group as at [date] and (of) its financial 

performance and cash flows for the year then ended in accordance with [indicate 

applicable financial reporting framework]. 

We acknowledge receipt of your instructions dated [date], requesting us to perform the 

specified work on the financial information of [name of component] for the year ended 

[date]. 

We confirm that: 

1.

 

We will be able to comply with the instructions. / We advise you that we will not 

be able to comply with the following instructions [specify instructions] for the 

following reasons [specify reasons]. 

2.

 

The instructions are clear and we understand them. / We would appreciate it if 

you could clarify the following instructions [specify instructions]. 

3.

 

We will cooperate with you and provide you with access to relevant audit 

documentation. 

We acknowledge that: 

1.

 

The financial information of [name of component] will be included in the group 

financial statements of [name of parent]. 

2.

 

You may consider it necessary to be involved in the work you have requested us 

to perform on the financial information of [name of component] for the year 

ended [date]. 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

 

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3.

 

You intend to evaluate and, if considered appropriate, use our work for the audit 

of the group financial statements of [name of parent]. 

In connection with the work that we will perform on the financial information of [name of 

component], a [describe component, for example, wholly-owned subsidiary, subsidiary, joint 

venture, investee accounted for by the equity or cost methods of accounting] of [name of 

parent], we confirm the following: 

1.

 

We have an understanding of [indicate relevant ethical requirements] that is sufficient 

to fulfill our responsibilities in the audit of the group financial statements, and will 

comply therewith. In particular, and with respect to [name of parent] and the other 

components in the group, we are independent within the meaning of [indicate 

relevant ethical requirements] and comply with the applicable requirements of [refer 

to rules] promulgated by [name of regulatory agency]. 

2.

 

We have an understanding of International Standards on Auditing and [indicate 

other national standards applicable to the audit of the group financial statements] 

that is sufficient to fulfill our responsibilities in the audit of the group financial 

statements and will conduct our work on the financial information of [name of 

component] for the year ended [date] in accordance with those standards. 

3.

 

We possess the special skills (for example, industry specific knowledge) necessary to 

perform the work on the financial information of the particular component. 

4.

 

We have an understanding of [indicate applicable financial reporting framework 

or group financial reporting procedures manual] that is sufficient to fulfill our 

responsibilities in the audit of the group financial statements. 

We will inform you of any changes in the above representations during the course of our 

work on the financial information of [name of component].  

[Auditor’s signature] 

[Date] 

[Auditor’s address] 

 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

 

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